London`s home market rallies as world`s wealthy shop for bargains

Date Published 30 January 2019

Savills recorded a 43% surge in the number of £15m+ deals across PCL last year; price cuts and currency fluctuations have made the capital`s trophy homes look ‘relatively good value in an international context`, says agency

Brexit-based gloom may have dominated market chatter, but new analysis by Savills shows that £4bn worth of £5m+ sales went through over the 12-month period, which was 10% more than in 2017. The big difference, it turns out, was the performance of the very top-end.

2018`s tally of 73 deals above £15m represented a 43% year-on-year rise (2017: 51), with their combined value of £2bn (2017: 1.4bn) marking the highest total seen since 2014. Both new-build and second-hand transactions were counted, and the average price paid was around £3,375 per square foot, according to the report.

London`s super-prime homes have been looking like good value to wealthy international buyers of late, said the agency, following price cuts triggered by the game-changing SDLT reforms of 2014, and taking recent currency fluctuations into account.

The research team has recorded a 19.4% fall in average PCL values since the peak in June 2014 (with a drop of 4.1% in 2018), while the decline in the £15m+ market has been even greater – at 22.6% – attracting the attentions of HNW bargain hunters from all over the world.

Source: Prime Resi 24th Jan 2019